(17)AR 071707 Sales and Use Tax Records

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ITEM #17 CITY OF COLTON AGENDA REPORT FOR CITY COUNCIL MEETING OF JULY 17, 2007 TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: DILU DE ALWIS, FINANCE DIRECTOR U SUBJECT: RESOLUTION AUTHORIZING THE EXAMINATION OF SALES AND USE TAX RECORDS DATE: JULY 2, 2007 BACKGROUND The records at the State Board of Equalization are held in confidence and only those authorized by a governing body via a resolution can review the public agencies data. The use of these records by the Colton's business license consultant will enhance our ability to collect revenues due to the City. DISCUSSION/ ANALYSIS On June 6, 2006, the City Council authorized the City Manager to execute an agreement with Municipal Auditing Services for the purpose of conducting business license taxes paid by Colton businesses to assure compliance with city ordinances. In order to assure that businesses are complying with the ordinance relative to business license tax, the auditor is requesting access to the State Board of Equalization's records. Approval of the attached resolution is routine administrative matter but is essential for Municipal Auditing Services to perform its duties which benefit the City. ALTERNATIVE Not approve the resolution approving access to the data which will have a negative impact on the General Fund Revenue. FINANCIAL IMPACT The potential positive impact to the General Fund revenue is not know at this time, however there won't be a negative impact as a result of approving the attached resolution ENVIRONMENTAL IMPACT N/A RECOMMENDATION Staff recommends approval of the attached resolution authorizing Municipal Auditing Services to examine the sales and use tax records at the State Board of Equalization. REVIEW TEAM ONLY City Attorney: --1 Finance Director: kw City Manager: �T OTHER: